WÄRTSILÄ PROVIDER OF ENVIRONMENTAL SOLUTIONS ASLAK SUOPANKI, WÄRTSILÄ FINLAND, ENVIRONMENTAL SERVICES SUSTAINABLE SHIPPING FORUM 2010, MIAMI 1 / 24 Wärtsilä 22 October 2010 Doc.ID: Revision: Status: Finalised
Wärtsilä, total solution provider for the marine industry Product areas Medium-speed engines Low-speed engines Propulsion Automation Seals and bearings System integration Environmental solutions 2 / 24 Wärtsilä 22 October 2010 Related services Ship design Engineering Project management Commissioning Lifecycle support Crew training Operations & Management Doc.ID: Revision: Status: Finalised
Wärtsilä s environmental solutions portfolio SO x - Scrubber NO x - Catalytic Reduction Consultancy Services Emission Monitoring Remote Asset Optimisation Crankcase ventilation Slow steaming kit Low Loss Concept Oily Water Separation Ballast Treatment Propulsion Efficiency +5% Propulsion Efficiency +10% Low NO x tuning Wet methods Gas Conversion Boiler optimisation Waste heat recovery Fuel Cells Effluent monitoring Propulsion Efficiency +15% 3 / 24 Wärtsilä 22 October 2010
NO x SO x CO 2 Ballast 4 / 24 Wärtsilä 22 October 2010
IMO, EU & Californian Sulphur Limits Sulphur limit (%) 4.5 3.5 World 67% 78% 71% 97% 86% 1.5 1.0 0.5 EU in ports 0.1 ECA California 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Review of the 0.5% S global limit to be performed in 2018. In case readiness is not deemed to be sufficient by 2020, the introduction of the limit will be postponed to 2025. 5 / 24 Wärtsilä 22 October 2010
IMO SO x Emission Control Areas Geographically defined SO x Emission Control Areas (SECA) where ships must limit their emissions. North Sea Baltic Sea English Channel 6 / 24 Wärtsilä 22 October 2010
New Emission Control Area North America Coming into force in August 2012. Fuel Sulphur 1% from August 2012, 0.1 % from 2015, all ships. NO X Tier III (Tier I minus 80 %) 2016, newbuilds. 200 nautical miles from the coast. 7 / 24 Wärtsilä 22 October 2010
California regulated waters Present legislation Marine gas oil (DMA) 1.5% sulphur, or marine diesel oil (DMB) 0.5% sulphur. San Francisco 1 January 2012 Marine gas oil (DMA) or marine diesel oil (DMB) 0.1% sulphur. 24 nautical miles from the coast. Los Angeles San Diego 1 January 2015 IMO ECA regulations. 8 / 24 Wärtsilä 22 September 2010 Low Sulphur Fuel Adaptation / Dan Pettersson
Wärtsilä fresh water scrubber test unit (MT Suula) Closed-loop, fresh water scrubber Compliance with Marpol and certified by DNV and GL The first certified marine SO x scrubber in the world 9 / 24 Wärtsilä 22 October 2010
FWS working principle and main components Exhaust gas Circulation of fresh water into which NaOH is added 25 m 3 /MWh Closed loop = Zero discharge in enclosed area ph NaOH unit ph Scrubber Cooling 0.1 m 3 /MWh Fresh water Water Treatment and monitoring Holding tank 0.1 m 3 /MWh Process tank 0.1 m 3 /MWh Seawater Sludge tank 0.1-0.4 kg/mwh 10 / 24 Wärtsilä 22 October 2010
Bleed-off treatment unit by Wärtsilä Senitec Senitec unit is also certified by IMO and USCG for bilge water use 11 / 24 Wärtsilä 22 October 2010
Public Test Report available Project background Legislation review Emission results Effluent results Sludge results And much more 12 / 24 Wärtsilä 22 October 2010 Doc.ID: Revision: Status: Finalised
SCRUBBER ECONOMICS 13 / 24 Wärtsilä 22 October 2010
Scrubber economics simplified Price difference between low S fuel and HFO Hours in sulphur restricted area Savings with scrubber Payback time 14 / 24 Wärtsilä 22 October 2010
Fuel oil prices, Rotterdam Price difference (USD/t) 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 Fuel price differences (Rotterdam) MGO - IFO380 diff. MDO - IFO380 diff. LS380 - IFO380 diff. Source: bunkerworld.com 15 / 24 Wärtsilä 22 October 2010
Fuel oil prices, Rotterdam 100 price (LSHFO HFO) = 10-90 USD/ton 90 80 Price difference (USD/t) 70 60 50 40 30 20 10 0 Source: bunkerworld.com 16 / 24 Wärtsilä 22 October 2010
Fuel oil prices The future? ~2X$ Price 1.6X$ X$ HFO Distillates, long time average* Distillates, currently** Scrubber economics likely to become more attractive! *Source: Analysis of the Consequences of Low Sulphur Fuel Requirements; Notteboom, Delhaye, Vanherle ** Source: Bunkerworld 17 / 24 Wärtsilä 22 October 2010
Cost comparison for 25 years Total engine power: 10 MW Annual fuel oil consump9on: 9800 tons Annual average load: 69% Interest rate for NPV calcula9ons: 5.0% Fuel price infla9on rate: 4.8% (1980-2010 average) NaOH (50%) price: 254 USD/ton MUSD 140 120 100 80 60 40 20 0 HFO + Scrubber MGO 33.2 MUSD Savings Case 1 (August 2010) HFO 428 USD/ton MGO 649 USD/ton 18 / 24 Wärtsilä 22 October 2010
Cost comparison for 25 years Total engine power: 10 MW Annual fuel oil consump9on: 9800 tons Annual average load: 69% Interest rate for NPV calcula9ons: 5.0% Fuel price infla9on rate: 4.8% (1980-2010 average) NaOH (50%) price: 254 USD/ton Case 2 (August 2008) 140 HFO 244 USD/ton MUSD 120 100 80 60 71.6 MUSD MGO 648 USD/ton 40 20 0 HFO + Scrubber MGO Savings 19 / 24 Wärtsilä 22 October 2010
Cost comparison for 25 years Total engine power: 10 MW Annual fuel oil consump9on: 9800 tons Annual average load: 69% Interest rate for NPV calcula9ons: 5.0% Fuel price infla9on rate: 4.8% (1980-2010 average) NaOH (50%) price: 254 USD/ton Case 3 (May 2008) 250 HFO 580 USD/ton MUSD 200 150 100 127.2 MUSD MGO 1282 USD/ton 50 0 HFO + Scrubber MGO Savings 20 / 24 Wärtsilä 22 October 2010
Scrubber alternative Wärtsilä LNG PAC D A C B A. Storage tanks B. Evaporators C. Dual-Fuel Main engine D. Dual-Fuel Aux engines No moving parts in the fuel system! 21 / 24 Wärtsilä 22 October 2010
Summary Wärtsilä has a wide variety of solutions available for environmental compliance, both for new builds and existing vessels. In SO x Emission Control Areas the cost savings using scrubber are immediate. In 2015 the cost savings will be dramatic. In global operation outside SECA drastic savings in 2020 are evident with scrubber. Already from 2012 savings are possible when using cheaper HFO with higher sulphur content than the global limit 3.5 %, where available. In ports with stringent sulphur limits (e.g. EU) savings can already be achieved with scrubbers for diesel-generators and oil-fired boilers. Wärtsilä fresh water scrubber solutions are fit for new builds and retrofits, for any engine and boiler brand. 22 / 24 Wärtsilä 22 October 2010
SOx@wartsila.com NOx@wartsila.com 23 / 24 Wärtsilä 22 October 2010
Thank You! 24 / 24 Wärtsilä 22 October 2010